On May 18, the IRS urged tax-exempt organizations to file Form 990 even if they missed the filing deadline of May 17. This year’s filing deadline for Form 990 is critical because it marks the third year for the rule established by the “2006 Pension Protection Act.” Under this provision, if non-church tax-exempt organizations fail to file Form 990 for three consecutive years, their exempt status will be revoked. The filing requirement went into effect for 2007, making 2010 the third and critical year (filing for the 2009 year).
Realizing that many small tax-exempt organizations haven’t filed Form 990 on time, the IRS has decided to publish guidance to offer relief to these organizations in order to help them maintain their tax-exempt status.
A review of the filing requirements:
* Organizations with annual gross receipts of $25,000 or less can file an electronic Form
990-N, called an e-Postcard.
* Organizations with annual gross receipts of less than $500,000 and total assets of less than $1.25 million, can file Form 990-EZ or the full Form 990.
* Organizations with gross annual receipts of $500,000 or more and total assets of $1.25 million or more must file Form 990.
* Private foundations, regardless of financial activity, must file Form 990-PF.
For details or filing assistance, contact our office.